Casino income higher than before Katrina|[07/11/07]
Published 12:00 am Wednesday, July 11, 2007
Casinos in Vicksburg showed growth over June 2005, a comparison that is needed due to last year’s Katrina-inspired bump.
The reporting period had five weekends including the three-day Memorial Day holiday this year, which may also have been a factor.
Still, it appears from local revenue reports that casinos are experiencing a growth underlying the major fluctuations that followed the August 2005 storm that closed all Gulf Coast operations for much of 2006.
For the period, reports show $747,610 paid to the City of Vicksburg and $291,471 to Warren County, ahead of the pace for this time in 2004-05.
So far this fiscal year, which started Oct. 1, city officials can count $5,405,975 toward its treasury and counterparts in Warren County can count $2,324,505, with the Vicksburg Warren School District collecting $631,430.
Through June 2005, the city had collected $5,298,125 and the county $2,222,639.
The taxes are collected weekly by the Mississippi Tax Commission and rebated to cities and counties monthly.
Vicksburg’s four casinos pay a city-imposed 3.2 percent revenue tax. Of that, 10 percent goes to schools, 25 percent to Warren County and 65 percent to the city. A second revenue tax is a state-imposed .8 percent revenue tax. It is split based on population proportions between Vicksburg and Warren County.
A $150 per-position fee is also paid to the city at various times during the year, called a “device tax.”
Even with fees of $128,250 paid this month, the mid-May to mid-June period reflected a busy first half of summer.
“Anytime you have that and a three-day holiday, it’s good,” Rainbow general manager Curt Follmer said, adding this year has been “a funny year” after business spiked for about six months after Katrina decimated the coast.
In June, Follmer oversaw a soft grand opening of the property’s River View restaurant, with more promotions associated with it planned in the coming weeks.
The Warrenton Road casino is still listed for sale by its parent company, Bally Technologies.
Through June of last year, as casinos on the Gulf Coast slowly reopened, the city had collected nearly $1 million more in tax revenue from the gaming venues here and the county about $400,000 more.
Still, prospects are hopeful for a strong year from existing casinos.
“It’s positive,” Follmer said. “We’d all like to see 20 percent growth, but I don’t think it’s possible in Vicksburg at this time.”
Also operating in Vicksburg are Ameristar, DiamondJacks and Horizon casinos. Ground has been broken for a fifth development with an August 2008 opening date expected. Two more casinos are on the drawing board.